This year in real estate has put many buyers through the wringer, with a shortage of homes and market and bidding wars on the homes that are available. Particularly in the greater Phoenix area, the skyrocketing home values caused by the dynamics of supply (not enough) and demand (very high), have started to price some buyers out of the market. As average prices increase, it makes it more difficult for buyers who need to utilize FHA or conventional financing to find homes that fall within the loan limits.
There is good news on the horizon, however. Just this week, the Federal Housing Finance Authority (FHFA) released its 2022 guidelines for conventional, or conforming, loans. An increase was expected, but the FHFA set the maximum loan much higher than originally expected: $647,200!
Based on the revised conforming loan guidelines, the Department of Housing and Urban Development (HUD) also raised the FHA maximum loan amount, from $356,352 to a whopping $441,600 in Maricopa County! That's nearly an $85,000 increase!
These updated guidelines may make it easier for first-time homebuyers and non-cash buyers (or those who don't have big down payments) to get financed for homes in the Phoenix area, where home values have risen higher than the national average in recent years.
We are still in a holding pattern to see what will happen with mortgage interest rates in 2022, but expert consensus sees interest rates rising throughout the year. If you are thinking about buying a home in 2022, you may want to consider making your move early in the season, before rates rise significantly.
We are here to help! If you want to find out how much your home is worth in this strong market, email me at firstname.lastname@example.org. W would be happy to help you determine if the time is right for you to sell your home or buy a new home.